Market Operator on Friday suspended Abuja Electricity Distribution Company (AEDC) for non- compliance with provisions of the Market Rules and failure to provide the Market Operator (MO) with an adequate Bank Guarantee in line with section 15.3.3 of the Market Rules.
In a public notice signed by Ali Buhari Ahmad for Market Operator, the MO had previously notified AEDC in writing of its Default of the Market Rules via;
1. Request for Fulfillment of Prudential Requirement dated 13/Feb/2024
2. Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated
22/Mar/2024 and,
3. Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated 8/Apr/2024
“The MO in these notices requested that corrective actions be taken within a specified period to cure the default. In spite of all notifications, AEDC failed to cure this Default. In view of this non-compliance, AEDC is hereby suspended from the MO Administered Electricity Market”
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With the suspension, no new contract or agreement shall be entered into with AEDC within the Suspension period.
“To remedy this situation, AEDC must provide an adequate Bank Guarantee within five (5) Business Days (BD) from the date of this notice. If, after the 5 BD this default is not cured, AEDC’s network may be partially or totally disconnected from the grid in line with section 45 of the Market Rules.
“Furthermore, after 30 days of the disconnection from the grid and the default is not cured, the Market Operator will terminate AEDC’s Market Participation Agreement.
